Part B

Problem 14-02A a-c The post-closing trial balance Blossom Corporation at December 31, 2020, contains the following stockholders' equity accounts. Preferred Stock (15,200 shares issued) $760,000 Common Stock (243,000 shares issued) 3,645,000 Paid-in Capital in Excess of Par-Preferred Stock 243,000 Paid-in Capital in Excess of Par-Common Stock 417,000 Common Stock Dividends Distributable 364,500 Retained Earnings 881,460 1. 2 3. 4. A review of the accounting records reveals the following. No errors have been made in recording 2020 transactions or in preparing the closing entry for net income. Preferred stock is $50 par, 6%, and cumulative; 15,200 shares have been outstanding since January 1, 2019 Authorized stock is 20,200 shares of preferred, 486,000 shares of common with a $15 par value. The January 1 balance in Retained Earnings was $1,190,000. On July 1, 20,900 shares of common stock were issued for cash at $18 per share. 6. On September 1, the company discovered an understatement error of $85,200 in computing salaries and wages expense in 2019. The net of tax effect of $59,640 was properly debited directly to Retained Earnings. 7. A cash dividend of 5364,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019. 8. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $18. 9. Net income for the year was $553,000. 10. On December 31, 2020, the directors authorized disclosure of a $191,000 restriction of retained earnings for plant expansion. (Use Note X.) Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.) Retained Earnings 7 7 7 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.) BLOSSOM CORPORATION. Partial Balance Sheet 7 $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Compute the allocation of the cash dividend to preferred and common stock. Allocation of the cash dividend to preferred stock S Allocation of the cash dividend to common stock S Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT